1 LECTURE IS3318 LECTURE 1 3/1/12 2 Details – IS3318 • Ciara Heavin • Room 3.85 ORB (3rd Floor) • [email protected] • 021 4903826 Can you answer this? Four jolly men sat down to play; And played all night till break of day; They played for money and not for fun, With separate scores for every one. Yet when they came to square accounts, They all had made quite fair amounts! • Can you the paradox explain? • If no one lost, how could all gain? Can you answer this? • What is the name of the famous city? 5 LEARNING OBJECTIVES 1. Understand the effects of information systems on business and their relationship to globalization. 2. Explain why information systems are so essential in business today. 3. Define an information system and describe its management, organization, and technology components. 6 NBA Teams Make a Slam Dunk with Information Technology • Problem: Lack of hard data usable in decision-making processes, costly and competitive market. • Solutions: Developed a new system designed to collect and organize data using video clips of games. • Synergy Sports Technology tags video of each game with hundreds of descriptive categories and allows coaches and players to stream game footage from the Web. • Demonstrates IT’s role in innovation and improving business processes. • Illustrates how the Web has allowed businesses to use new tools to analyze critical data. 7 8 • NBA playoff games require even greater preparation than games played during the regular season, and Synergy Sports offers powerful and fast access to exactly the information teams need to get ready for these important matchups. NBA playoff teams use Synergy Sports to study their opponents (and their own team) to formulate game plans going into each round of the playoffs. In my 11 years with the Phoenix Suns (1992-2003), I was responsible for the video and analytics that our coaches used to make critical decisions during both the regular season and playoffs. During post-season play, I spent countless hours creating 100+ page Playoff Reports to pull together information from our advanced scout and traditional NBA stats, along with data from the many proprietary analytics systems that I had developed for the team. • http://www.mysynergysports.com/playoffdataviews/index.htm • http://en.wikipedia.org/wiki/Synergy_Sports_Technology 9 The Role of Information Systems in Business Today • How information systems are transforming business • Increase in wireless technology use • Shifts in media and advertising • New federal security and accounting laws • Globalization opportunities • Internet has drastically reduced costs of operating on global scale • Presents both challenges and opportunities 10 The Role of Information Systems in Business Today Information Technology Capital Investment Information technology investment, defined as hardware, software, and communications equipment, grew from 32% to 51% between 1980 and 2008. Source: Based on data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income and Product Accounts, 2008. Figure 1-1 11 The Role of Information Systems in Business Today • In the emerging, fully digital firm • Significant business relationships are digitally enabled and mediated • Core business processes are accomplished through digital networks • Key corporate assets are managed digitally • Digital firms offer greater flexibility in organization and management • Time shifting, space shifting 12 The Role of Information Systems in Business Today • Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals • Business firms invest heavily in information systems to achieve six strategic business objectives: • • • • • • Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival 13 The Role of Information Systems in Business Today • Operational excellence: • Improvement of efficiency to attain higher profitability • Information systems, technology an important tool in achieving greater efficiency and productivity 14 The Role of Information Systems in Business Today • New products, services, and business models: • Business model: describes how company produces, delivers, and sells product or service to create wealth • Information systems and technology a major enabling tool for new products, services, business models 15 The Role of Information Systems in Business Today • Customer and supplier intimacy: • Serving customers well leads to customers returning, which raises revenues and profits • Intimacy with suppliers allows them to provide vital inputs, which lowers costs 16 The Role of Information Systems in Business Today • Improved decision making • Without accurate information: • Managers must use forecasts, best guesses, luck • Leads to: • Overproduction, underproduction of goods and services • Misallocation of resources • Poor response times • Poor outcomes raise costs, lose customers 17 The Role of Information Systems in Business Today • Competitive advantage • Delivering better performance • Charging less for superior products • Responding to customers and suppliers in real time 18 The Role of Information Systems in Business Today • Survival • Information technologies as necessity of business • May be: • Industry-level changes • Governmental regulations requiring record-keeping 19 The Role of Information Systems in Business Today The Interdependence Between Organizations and Information Technology In contemporary systems there is a growing interdependence between a firm’s information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, what the organization would like to do depends on what its systems will permit it to do. 20 Perspectives on Information Systems • Information system: • Set of interrelated components • Collect, process, store, and distribute information • Support decision making, coordination, and control • Information vs. data • Data are streams of raw facts • Information is data shaped into meaningful form 21 Perspectives on Information Systems Data and Information Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territory.